• April 29, 2025

USA vs China: The global competition for hearts, minds and wallets

The strategic rivalry between the USA and China has long gone beyond geopolitical and military competition. It is evolving into a multifaceted battle for global influence and is steadily gaining importance. This competition now encompasses soft power, economic relations, cultural appeal, and digital supremacy alike.

The following article provides a comprehensive analysis and highlights how both superpowers are strategically building their positions. Both are determined to win the hearts, minds, and wallets of the global community for themselves in a lasting way.

The rivalry of soft power

The use of soft power, which is based on attraction and persuasion rather than coercion, is becoming increasingly important. It has become a crucial arena in the strategic competition between the USA and China. China now attaches as much importance to soft power as it does to its military and economic strength.

China's leadership increasingly sees soft power as a key instrument for its global ambitions and interests. Beijing's focus on soft power continues to grow as the Asian nation seeks to convince the world of its peaceful intentions. At the same time, China is striving to credibly demonstrate its commitment to sustainable and peaceful development.

China has become a major player in the soft power sector thanks to several key factors:

  • The robust economic growth
  • The ambitious Belt and Road Initiative (BRI)
  • Resolving conflicts with neighboring countries
  • Rapid technological progress
  • Substantial contributions to UN peace missions

Despite these efforts, China continues to face significant challenges to its international image in Western countries. The US and its allies are actively trying to systematically weaken Chinese soft power through targeted criticism. They portray the Belt and Road Initiative as a “debt trap” and point to human rights violations in China. They also denounce China's authoritarian model of governance and publicize alleged labour exploitation in Africa.

At the same time, the USA has traditionally used its extensive network of international rules and institutions to exert influence worldwide. It uses these instruments in a targeted manner to assume global leadership and promote American values. Nevertheless, the effectiveness of this approach remained inconsistent and was met with criticism during President Trump's first term. During this time, the US withdrew from several international commitments, potentially weakening its credibility.

Economic strategies and global influence

Trump's trade policy

The latest developments in US trade policy mark a significant turning point and could change America's global influence. In April 2025, President Trump announced the so-called “Liberation Day” tariffs, setting new trade barriers. These include a general import tax of 10% and targeted “reciprocal” tariffs against key trading partners.

The measures represent the highest trade barriers since 1909 and affect numerous major economies. Particularly high tariffs affect Vietnam (46%), Japan (24%), South Korea (25%) and the European Union (20%). Even Canada and Mexico, America's neighbors and trading partners, are facing significant new tariffs.

These tariffs act as an additional cost factor and heavily burden American companies and consumers alike. The effects ripple through supply chains and impact many areas in the United States. They range from car purchases in Detroit to appliance sales in Dallas and construction projects in Denver.

The international response was swift and sparked widespread concern around the world. The European Union immediately began planning possible countermeasures against American trade policy. France’s President Macron explicitly called on European companies to consistently halt investments in the USA. At the same time, Canada's Prime Minister Mark Carney declared that "our old relationship of steadily deepening integration with the United States is over." Whether this will remain the case is still unclear at this point.

Chinas Belt-and-Road-Initiative

In contrast to America's goal-oriented approach, China has established the Belt and Road Initiative as a cornerstone of its economic policy. The BRI involves massive investments in the infrastructure of other countries, thereby significantly expanding China’s economic reach. At the same time, China improves its international image through the BRI and strengthens its position as a global economic power.

By presenting the BRI as a win-win cooperation model, China positions itself as a "responsible power" in the global community. This initiative specifically strengthens China’s economic influence and builds positive perceptions among the participating nations. Especially in developing countries, China thus fosters trust and long-term partnerships.

Cultural factors in global influence

Communication styles

The contrasting communication styles of the Americans and Chinese are a fundamental aspect of their international relations. They have a decisive influence on how both countries build up influence worldwide and pursue their interests.

American communication is typically:

  • Direct and explicit
  • Problem-solving oriented
  • Informal in approach
  • Convincing in nature

Americans typically reveal important information first, starting with the conclusions. They then provide supporting details to make their reasoning coherent and understandable. In business, they prefer to state their key points clearly and directly right away. Afterwards, they actively negotiate with their partners by testing and comparing different solutions. They deliberately try out various approaches before finally reaching a definitive outcome.

Chinese communication, on the other hand, is characterized by the following features:Convincing in nature

  • Building context before the main points
  • Formal interactions, especially with strangers or people of higher status
  • Thorough understanding of the problem before looking for solutions
  • Tendency to express expectations and goals instead of just facts

These fundamental differences decisively shape how each nation exerts and is perceived in terms of its global influence. American directness is appreciated in some cultural contexts and interpreted as a sign of openness.

In other regions, however, it comes across as brusque or culturally insensitive and is met with rejection. The Chinese way of communicating is rated positively by many for its richness of context and consideration. In the West, however, it is often seen as too indirect or inefficient and leads to misunderstandings.

Marketing approaches

The contrasting marketing strategies of American and Chinese companies reflect deeper cultural values and shape brand positioning. In China, Confucian values such as community and collectivism emphasize marketing and influence its direction.

Chinese brands focus on building a strong sense of belonging within their target audiences. They routinely integrate cultural symbols and collective values into their advertising campaigns. For example, ads for Chinese New Year often highlight family reunions and shared joy.

In contrast, American marketing reflects the country’s individualistic culture and highlights personal achievements. It emphasizes freedom, self-actualization, and individual benefits for the consumer. Campaigns are designed to specifically resonate with the personal aspirations and experiences of the target audience, consistently embodying the narrative and spirit of the American Dream.

International cooperation and global governance

The withdrawal of the USA from international organizations

President Trump's second term could further advance the withdrawal from and questioning of international organizations. This would significantly weaken the United States’ global leadership and spread uncertainty. Abandoning international commitments could severely impact America's position in the competition with China. At the same time, there is a risk that the USA’s reputation among allies and partners could suffer lasting damage.

China's participation in global governance

China has actively expanded and strategically strengthened its participation in the United Nations and other international organizations. As a result, China is purposefully presenting itself as a leading player within the international community and gaining prestige. This active participation enables China to credibly position itself as a responsible global power. At the same time, it is systematically expanding its influence on international norms and standards.

China is increasingly able to influence international norms in its favor through targeted co-design of global governance structures. At the same time, the country is acting as a proponent of a multilateral order and strengthening its role in global politics. Especially when the USA withdraws from such frameworks, China consistently uses the resulting freedom for its own benefit.

Conclusion

The competition between the USA and China for global influence presents a complex and multidimensional challenge. It goes far beyond traditional power politics and demands new strategies as well as flexible approaches from both superpowers. Each nation pursues different strategies that clearly reflect their cultural values, economic models, and geopolitical goals.

China's approach emphasizes development cooperation, cultural diplomacy and increased participation in global governance. At the same time, China is using its growing economic power in a targeted manner to continuously expand its global influence. The US relies on its traditional leadership role, democratic values and established global networks. However, political shifts towards protectionism and international isolation could increasingly jeopardize these traditional advantages.

The ultimate winner in this competition may not be determined by military or economic strength alone. Rather, it will be the ability to credibly address the real needs and desires of the global community. The strategic decisions of both nations will shape global perceptions in the future and significantly influence their respective spheres of influence. International cooperation, economic relations and cultural diplomacy will play a decisive role in this.

Learn more about how to strategically and successfully position your brand for online visibility in the global competition. Feel free to contact us for customized online marketing strategies that reach your target audiences around the world.

USA und China im wirtschaftlichen Wettbewerb – Symbolbild mit Handschlag, Globus, Flaggen und Technologie
Symbolic image for the global technology competition between the USA and China

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